In a short period of time, a New York business can find itself working with a variety of creditors. From banks that loan it money for start-up costs, to credit card companies that give it spending power to outfit it to succeed in its industry, businesses can quickly owe money to a lot of creditors with a lot of different loan terms. If a business struggles to gain a financial foothold, it can find itself facing those creditors all at once when bills start falling into default.
It can be tempting to shovel whatever money a business has off to the creditor or creditors that are the most threatening. However, any creditor with an outstanding debt can create a financial headache for a struggling business. One option that many businesses have and that allows them to face all of their creditors at one time is business bankruptcy.
Business bankruptcy brings a debtor business to court with all of its creditors. Regardless of the size of the debt or the type of institution the creditor is, any entity that claims the debtor business owes it money will be pulled into the bankruptcy proceedings for settlement of its debt. A successful Chapter 11 business bankruptcy filing may even leave a struggling company in a strong enough financial place to get ahead of its obligations and get a second chance at finding success in its market.
The Law Office of Ronald V. De Caprio can help you determine if business bankruptcy is a good option for your corporate entity. Whether your business files for bankruptcy protection is your decision and the firm’s legal staff can help you find the best information you need to make an informed decision. To learn more about the firm’s practice in the area of business bankruptcy, please visit its website on businesses, creditors and debt.